Article by - Gocompare.com
Why hiring a professional could help you save on home insurance
If you have shopped around and found a cheap home insurance quote then the last thing you need is to make a claim that forces your premiums to rise.
Yet for many Brits, attempting do-it-yourself (DIY) projects has become one of our favourite pastimes particularly since the onset of the recession when improving homes on a budget has taken on added relevance. However, taking on a project that’s beyond our capabilities could prove a false economy by sending our home insurance costs spiralling.
The problem with DIY
Research from the AA in May 2009 found that 1 in 10 homeowners attempting DIY projects will ultimately make mistakes that could cost more than £100 to rectify.
It reports that there is a surge in home insurance claims over Bank Holiday periods when homeowners typically tackle DIY projects. Accidental damage is the largest single category of home insurance claims with ‘escape of water’ proving to be one of the worst culprits. Typical accidents include drilling through pipes, or damaging a tap and flooding the home.
Other frequent home insurance claims relating to DIY include new shelves falling off the wall; paint or plaster dropped on carpets; electric being fused because a wire has inadvertently been cut through; smashed glass; and flat pack furniture collapsing.
While home insurance is there to pick up the pieces if something goes wrong, even homeowners with extensive cover can be affected financially because one claim on a home insurance policy can wipe out two years’ worth of a no-claims bonus unless you have a protected discount. If your policy carries a compulsory excess, then you will also have to pay out the agreed amount before the insurer covers the rest of the cost of the claim.
Insurers base premiums on risk, taking into account factors such as your personal circumstances and your address when determining how high your premiums should be. If you have a history of claims then you will usually be deemed a higher risk and the premiums you receive will rise as a result.
How a professional can help
Hiring a professional has numerous advantages. Not only does it relieve you from the stress of having to carry out a DIY project yourself, but it could also help you save money on home insurance by avoiding frustrating accidents.
Before hiring a professional, ensure they have suitable insurance in place. This may include:
- Public liability insurance: Covers injuries to third parties and damage to a property in connection with the business.
- Employers’ liability insurance: If a contractor has one or more members of staff in their employment they must have employers’ liability insurance by law. This protects them from any claims raised against them for injuries sustained by their staff whilst on duty.
- Product liability insurance: Covers compensation costs and expenses following injury or damage by goods that the professional has sold, supplied, repaired, tested or delivered.
How to choose the right professional
There are usually a host of professionals in any given area to choose from – so how do you know which one is right for you? As with any trade it’s vital you make an informed choice – so here are some factors to consider when shopping around:
- Get a clear quote – If you request a written quote then ask for a breakdown of the costs so there are no hidden extras. For example, who is paying for the materials and how good are they? Who will be doing the work – don’t assume that it will be the person providing the quote as this may not be the case. Do you need to move furniture or will the workers do this for you? How long will the job take?
- Payment – Set clear guidelines as to when the payment will be given – will you have to pay a portion of the costs upfront, for example?
- Rely on recommendations – Ask friends and family to recommend professionals they have used previously if you are impressed with how their home looks. Word of mouth is one of the best ways for a professional to build their reputation.
- Request references – Follow up on references – it may even be possible to visit another customer’s home.
- What is their speciality – If you are hiring a painter/decorator for example, they may have a strong preference for painting rather than putting up wallpaper. So find out what their speciality is and how it applies to you.
If you do decide on DIY…
Should you decide that DIY is the best option for you, ensure you have suitable home insurance cover in place before you begin any work. Pay particular attention to the level of accidental damage cover you have in place – most policies only cover electrical items as standard and you may need to take out extended cover to protect your property against DIY-related accidents. Also look for a policy with home emergency cover so you can get a quick callout from a professional in an emergency situation.
Use a comparison website to get an overview of the home insurance policies available if your existing insurer does not offer sufficient cover.